There is already Closed Circle, set up by three previously pubilshed science fiction and fantasy authors (Lynn Abbey, C. J. Cherryh, and Jane Fancher):
http://www.closed-circle.net/
They're all well-liked, well-reviewed authors -- but not authors with clout along the lines of, say, a James Patterson or Stephen King. C. J. Cherryh is huge as far as acclaim and awards go. Unfortunately, so far, the choice of titles for all of these authors is limited -- a few older titles. Maybe as the electronic rights of more older titles revert to them, more titles will go up. But newer publishing contracts will keep those rights longer. I think some of the titles they're offering were originally published by Warner's Questar imprint, which died in the 1990s -- explaining why those authors still have electronic rights for those titles.